European insurers’ ratings are likely to be resilient to a moderate fall in commercial real estate (CRE) values, although a systemic crisis would put greater pressure on individual issuers with larger exposures, suggests a new report from analysts at Fitch Ratings.
According to the rating agency, European insurers’ CRE exposures amounted to 4.1% of aggregate €11.5 trillion assets at the end of Q2 2022, of which direct CRE investment exposure comprised €202 billion, or 1.8% of total assets.
